Nifty IT index has lagged behind Nifty 50 in the last year, but experts believe that the sector could witness a revival with improving macros and cost efficiency measures.
Analysts at CLSA believe that the IT firms will guide conservatively going ahead and kept outlook unchanged for key verticals like banking, retail, hi-tech, and telecom
Among individual stocks, HCL Tech stood as the top gainer with a rally of 3.1%, followed by Tech Mahindra, TCS, Wipro, MphasiS, Infosys, L&T Technology Services, LTIMindtree, Coforge, and Persistent Systems, all closing higher by 0.5% to 2.4%.
Indian IT companies have seen an upward trend in the last three months, particularly in December, following the Federal Reserve s December 2023 release, which hints at the possibility of three rate cuts in the calendar year 2024, implying a reversal in the rate cycle.
Shares of India s IT companies, which earn a significant share of their revenue from the U.S., surged 16.13% in the final two months of 2023, exceeding the benchmark Nifty 50 s 13.9% gain.